If you are looking for the NSSF Tier 1 and Tier 2 rates in Kenya for 2026, this guide explains the new contribution amounts, how they are split between employer and employee, and how to calculate them correctly from salary.
In 2026, Kenya is using Year 4 NSSF contribution rates under the NSSF Act, 2013, and these rates are based on two salary bands:
- Tier 1 – contributions on the lower part of salary
- Tier 2 – contributions on the next salary band above Tier 1
The official 2026 employer notice was published by the National Social Security Fund in February 2026.
NSSF Rates in Kenya 2026 at a Glance
For 2026 (Year 4), the NSSF limits are:
- Lower Earnings Limit (LEL): KSh 8,000
- Upper Earnings Limit (UEL): KSh 72,000
- Contribution rate: 12% of pensionable pay
- Shared equally as:
- 6% employee
- 6% employer
2026 NSSF Tier 1 and Tier 2 Breakdown
| NSSF Section | Salary Band | Employee | Employer | Total |
|---|---|---|---|---|
| Tier 1 | First KSh 8,000 | KSh 480 | KSh 480 | KSh 960 |
| Tier 2 | Next KSh 64,000 (8,001 – 72,000) | KSh 3,840 | KSh 3,840 | KSh 7,680 |
| Maximum Total | Up to KSh 72,000+ | KSh 4,320 | KSh 4,320 | KSh 8,640 |
So, for any employee earning KSh 72,000 or more, the maximum monthly NSSF deduction in 2026 is:
- Employee deduction: KSh 4,320
- Employer contribution: KSh 4,320
- Total remitted to NSSF: KSh 8,640
What is NSSF Tier 1?
Tier 1 is the first portion of pensionable salary subject to NSSF deductions.
In 2026, Tier 1 applies to the first KSh 8,000 of gross pensionable salary.
Tier 1 Formula
Tier 1 contribution = 6% of KSh 8,000
That means:
- Employee pays: KSh 480
- Employer pays: KSh 480
- Total Tier 1 contribution: KSh 960
If an employee earns KSh 8,000 or less, only Tier 1 applies.
What is NSSF Tier 2?
Tier 2 is the second salary band above Tier 1.
In 2026, Tier 2 applies to salary between:
- KSh 8,001 and KSh 72,000
That means Tier 2 covers:
KSh 72,000 – KSh 8,000 = KSh 64,000
Tier 2 Formula
Tier 2 contribution = 6% of salary above KSh 8,000, up to KSh 72,000
Maximum Tier 2 contribution in 2026:
- Employee pays: KSh 3,840
- Employer pays: KSh 3,840
- Total Tier 2 contribution: KSh 7,680
Also see: NSSF Calculator Kenya
How to Calculate NSSF Tier 1 and Tier 2 in Kenya
Here is the simple method.
Step 1: Check the employee’s gross pensionable salary
Use the monthly salary subject to NSSF contribution.
Step 2: Calculate Tier 1
Take the first KSh 8,000 only.
Tier 1 = 6% × 8,000 = KSh 480 (employee)
Employer also pays KSh 480
Step 3: Calculate Tier 2
If salary is above KSh 8,000, subtract KSh 8,000.
Tier 2 salary = Gross salary – 8,000
Then calculate:
Tier 2 = 6% × Tier 2 salary
But only up to KSh 72,000 total salary.
Step 4: Add Tier 1 + Tier 2
That gives the full NSSF deduction.
NSSF Calculation Examples for 2026
Example 1: Salary = KSh 8,000
Only Tier 1 applies.
- Tier 1 = 6% × 8,000 = KSh 480
- Tier 2 = KSh 0
Employee deduction = KSh 480
Employer contribution = KSh 480
Total NSSF = KSh 960
Example 2: Salary = KSh 20,000
Tier 1
- 6% × 8,000 = KSh 480
Tier 2
- 20,000 – 8,000 = 12,000
- 6% × 12,000 = KSh 720
Total
- Employee deduction = 480 + 720 = KSh 1,200
- Employer contribution = KSh 1,200
- Total NSSF = KSh 2,400
Example 3: Salary = KSh 50,000
Tier 1
- 6% × 8,000 = KSh 480
Tier 2
- 50,000 – 8,000 = 42,000
- 6% × 42,000 = KSh 2,520
Total
- Employee deduction = KSh 3,000
- Employer contribution = KSh 3,000
- Total NSSF = KSh 6,000
Example 4: Salary = KSh 72,000
Tier 1
- 6% × 8,000 = KSh 480
Tier 2
- 72,000 – 8,000 = 64,000
- 6% × 64,000 = KSh 3,840
Total
- Employee deduction = KSh 4,320
- Employer contribution = KSh 4,320
- Total NSSF = KSh 8,640
Example 5: Salary = KSh 100,000
NSSF is capped at the Upper Earnings Limit of KSh 72,000.
So you still calculate only up to KSh 72,000.
- Employee deduction = KSh 4,320
- Employer contribution = KSh 4,320
- Total NSSF = KSh 8,640
Simple NSSF Formula for 2026
Use this:
If salary is KSh 8,000 or less:
NSSF = 6% of salary (employee)
Employer matches the same
If salary is between KSh 8,001 and KSh 72,000:
Employee NSSF = 6% of salary
Employer NSSF = 6% of salary
If salary is above KSh 72,000:
Employee NSSF = KSh 4,320
Employer NSSF = KSh 4,320
That is because 6% of 72,000 = KSh 4,320.
Why NSSF Has Tier 1 and Tier 2
The NSSF structure was created to build stronger retirement savings for workers in Kenya under the NSSF Act, 2013. The Act introduced graduated contributions instead of the old flat rate system.
In simple terms:
- Tier 1 protects the lower salary band
- Tier 2 applies to the next income level
- Both help employees save more for retirement over time
FAQs About NSSF Tier 1 and Tier 2 Rates in Kenya 2026
What are the new rates for NSSF in Kenya?
The new NSSF rates in Kenya for 2026 are based on:
- Lower Earnings Limit (LEL): KSh 8,000
- Upper Earnings Limit (UEL): KSh 72,000
- Employee contribution: 6%
- Employer contribution: 6%
Maximum monthly contribution in 2026 is:
- KSh 4,320 employee
- KSh 4,320 employer
- KSh 8,640 total
What are the new NSSF contribution rates?
The 2026 NSSF contribution rate is 12% of pensionable earnings, split equally as:
- 6% deducted from employee salary
- 6% paid by employer
This applies up to the Upper Earnings Limit of KSh 72,000.
How much does NSSF charge per month?
NSSF does not charge one flat amount for everyone.
The monthly contribution depends on salary:
- If salary is KSh 8,000, employee pays KSh 480
- If salary is KSh 20,000, employee pays KSh 1,200
- If salary is KSh 50,000, employee pays KSh 3,000
- If salary is KSh 72,000 or more, employee pays KSh 4,320
The employer contributes the same amount.
How to calculate NSSF Tier 1 and Tier 2?
To calculate NSSF Tier 1 and Tier 2 in Kenya 2026:
Tier 1
Take the first KSh 8,000
Tier 1 = 6% × 8,000 = KSh 480
Tier 2
Take the salary above KSh 8,000 up to KSh 72,000
Tier 2 = 6% × (Salary – 8,000)
Total NSSF
Total Employee NSSF = Tier 1 + Tier 2
Employer contributes the same amount
Example for KSh 30,000 salary:
- Tier 1 = 6% × 8,000 = KSh 480
- Tier 2 = 6% × 22,000 = KSh 1,320
- Total employee NSSF = KSh 1,800
- Employer NSSF = KSh 1,800
- Total remitted = KSh 3,600
Final Word
The NSSF Tier 1 and Tier 2 rates in Kenya for 2026 are important for both employers and employees because they directly affect monthly payroll and retirement savings.
Quick recap:
- Tier 1 covers the first KSh 8,000
- Tier 2 covers the next band up to KSh 72,000
- Employee pays 6%
- Employer pays 6%
- Maximum employee deduction = KSh 4,320
- Maximum total monthly NSSF = KSh 8,640
